Apollo Debt Solutions BDC 8-K

What Happened

• Apollo Debt Solutions BDC (ADS) filed an 8‑K on January 23, 2026 announcing multiple updates: it declared January 2026 distributions for all share classes, sold unregistered Class I common shares to feeder vehicles, and provided its December 31, 2025 NAV and portfolio update. The unregistered Private Offering sale occurred as of January 2, 2026 (final share count determined January 23, 2026).
• ADS also reported portfolio and operating metrics through December 31, 2025, including originations, portfolio composition, leverage and performance metrics, and noted ongoing public and private share offerings.

Key Details

• Unregistered share sale: 1,832,227 Class I Common Shares sold for $44,714,776 (exempt under Section 4(a)(2) and/or Regulation S).
• January distributions declared (record date Jan 30, 2026; payable ~Feb 27, 2026): Gross $0.1800 per share for all classes; net per share — Class I $0.1800, Class S $0.1624 (after $0.0176 servicing fee), Class D $0.1748 (after $0.0052 fee). Class I annualized distribution rate (incl. this distribution) = 8.85% as of Jan 23, 2026.
• NAV and portfolio (as of Dec 31, 2025): NAV per share $24.40 (all classes); aggregate NAV $14.8B; portfolio fair value ~$24.5B across 415 companies; principal debt outstanding ~$9.5B; debt-to-equity ≈0.64x; net leverage ≈0.59x.
• Portfolio activity and credit profile (2025): $11.9B of private debt originations, weighted‑average spread on new originations 485 bps; ~100% first‑lien and ~96% floating‑rate; weighted‑avg yield at amortized cost 8.64%; 10 issuers on non‑accrual (0.3% of portfolio).

Why It Matters

• Income: The declared $0.18/month distribution (and the 8.85% annualized rate for Class I) is directly relevant to income-focused shareholders and affects expected cash distributions or reinvestment choices.
• Capital and liquidity: The unregistered Class I sale ($44.7M) and the ongoing $10B continuous public Offering plus private placements show ADS is actively raising capital to fund investments. Investors should note share issuance can affect supply and NAV dynamics.
• Portfolio health and risk: The large portfolio ($24.5B), high proportion of first‑lien and floating‑rate loans, modest non‑accrual rate (~0.3%), and net leverage (0.59x) provide concrete metrics on credit exposure and leverage that influence risk and return expectations.